BTp Valore on track: rates at 2.5 % in the first two years, then 2.8 % and 3.5 %

Two years at 2.5%, two more at 2.8% and the last two years at 3.5%, with the addition of the final premium at 8 per thousand for those who buy the bond next week and keep it until maturity on 10 March 2032. On this assumption, the BTp Valore that will be on offer from Monday 2 to Friday 6 March offers a gross annual yield of 2.946%, which rises to 3.08% considering the loyalty premium. Ordinary government bonds of the same maturity now travel at 2.766%. Once again, in short, the Treasury is putting a positive differential on the table to entice savers.

The Mef has communicated the minimum guaranteed rates of the new BTp Valore, which will be on offer until Friday 6 March except for the usual hypothesis of early closure, which, however, has never been implemented so far. All the purchase requests presented in time will be satisfied, with the only condition that sets the minimum denomination at one thousand euro.
With the numbers indicated by Via XX Settembre, which at the close of the issue can only be confirmed or revised upwards in the event (today unlikely) of a significant rise in rates on the markets next week, the savers' calculators are therefore switched on. They have to consider several variables, precisely because of the very fragmented calendar chosen in this case by the Mef technicians in the construction of the usual step-up mechanism, which raises yields with the passage of time.

In fact, BTp Valore number six, being placed with Intesa, Unicredit and Bpm as dealers and Mps and Iccrea as co-dealers, lines up for the first time three two-year periods, unlike the previous six-year (the one in March 2024 followed by the special issue two months later due to the volume of requests received) which divided the life of the bond into two three-year periods. The only two-year periods that have appeared so far on the BTp Valore scene concern the first two editions, those of 2023, with the first having a four-year life (it expires on 13 June 2027), divided in two by yields, and the second having divided its five years into a 3+2.
Today, market yields are more tepid than then (the ten-year BTp is travelling 70-80 basis points below the June 2023 levels), and the Treasury is consequently on a somewhat longer horizon, in the middle of the classic 4-8 year range for securities for small investors. The architecture is designed to incentivise the fidelity of the saver, typically a drawer, but lends itself to analysis over several time horizons; the yield delta is appreciable over all maturities (the 2.5% envisaged for the first two years compares, for example, with the 2.16% of the 'normal' BTp of the same duration), but the steepest step was taken in the last two years with the transparent objective of incentivising loyalty to the bond, also rewarded with the final 0.8%.

The two-year scan in any case does not impose any obligation on the saver, who as always can resell the BTp Valore at any time on the market, without any particular unknowns thanks to the excellent level of liquidity that characterises all Italian government bonds. The principal is of course guaranteed at maturity, but all of the above are now travelling in positive territory, ranging from 100.61 of the bond maturing in October 2032 to 105.16 of the one coming to an end in October 2028.
For the rest, the new edition of the BTp designed for savers maintains the now customary characteristics. The coupons will have a quarterly rhythm, the taxation on yields and fidelity premium is the facilitated one at 12.5% and there is exemption from inheritance tax. It should also be taken into account that up to 50,000 euro a portfolio of government bonds does not raise the value of the Isee, the indicator used to calculate university, school and local welfare rates and to measure entitlement to many public policies. All purchase requests will be met by the Treasury, with the only condition that the minimum denomination is one thousand euro. And for those who buy at issuance through banks, post offices or home banking, there are no fees.